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Council introduces ordinance to limit automatic CPI utility hikes, votes to extend cap to water and sewer
Summary
Council introduced an ordinance to amend city code so annual utility increases tied to the Consumer Price Index would be 'not to exceed' CPI rather than mandatory; during introduction the council voted to add water and sewer to the not‑to‑exceed language and carried the amendment by roll call.
The council introduced Ordinance No. 24 of 2026 to amend Section 30‑18 of the city's Code of Ordinances governing annual adjustments to electric rates tied to the Consumer Price Index (CPI). The proposed change replaces mandatory language that previously read the city "shall" adjust rates based on CPI with a "not to exceed" formulation so council retains discretion to soften large automatic increases.
The mayor summarized the intent as a "clean up the language" item to give the city flexibility and avoid imposing an automatic, potentially large increase on residents. A staff speaker noted the 2026 electricity index for the city was 6.3% and illustrated that at a 1,000‑kilowatt usage level the CPI adjustment would translate to roughly a $2 per month increase on the base amount; the staff member said the ordinance would apply to the base rate rather than variable fuel charges.
During the discussion Councilman Nielsen moved to add water and sewer to the same "not to exceed" language; the motion was seconded and adopted by roll call (Eli, Nielsen, Smith, Kuykendall, Harrington and P.T. voted yes). The mayor and staff said the ordinance is for introduction and that a final vote and any implementation details (including retroactivity questions and rate‑study timing) will be handled before adoption, with the item returning July 13.
